The document discusses outcome budgeting and its process. It explains key concepts like outcomes, outputs, capital vs revenue expenditure and charged vs voted expenditure. It provides international examples of outcome budgeting from the UK and discusses the need to link outlays to outputs and outcomes to evaluate the value for money and functioning of government programs. Guidelines for measuring outcomes are also outlined.

2.  Preliminary remarks on Budget
 Outcome Budget and its process
 Outcomes – Conceptual Issues
 Major programmes and their Outcomes
 International Experience
 Conclusions

3. 112. Annual financial statement.—(1)
The President shall in respect of every
financial year cause to be laid before
both the Houses of Parliament a
statement of the estimated receipts and
expenditure of the Government of
India for that year, in this Part referred
to as the "annual financial statement''.

4.  Charged and Voted
 Charged Expenditure
 President, speaker and deputy speaker,
Chairman and deputy chairmen of
Rajya Sabha, Judges of SC, CAG,
interest payments and court
decree/award

5.  Capital and Revenue
 Capital expenditure is the expenditure that
creates an asset and capital receipt is that
creates a liability or dissolves an asset
 Revenue expenditure is the expenditure that
does not create an assent and revenue receipt is
that income that accrues without creating a
liability or dissolving an asset

6.  There is nothing like Budget in the Constitution
 There is nothing like plan/non-plan
classification mandated by the Constitution
 There is nothing like interim Budget
 Empowering People

7. Outlays versus Outcomes
100. At the same time, I must caution that outlays do not
necessarily mean outcomes. The people of the country are
concerned with outcomes. The Prime Minister has
repeatedly emphasized the need to improve the quality of
implementation and enhance the efficiency and
accountability of the delivery mechanism. During the course
of the year, together with the Planning Commission, we shall
put in place a mechanism to measure the development
outcomes of all major programmes. We shall also ensure
that programmes and schemes are not allowed to continue
indefinitely from one Plan period to the next without an
independent and in-depth evaluation. Civil society should
also engage Government in a healthy debate on the efficiency
of the delivery mechanism. FM’s Budget speech

8.  Better reporting system
 An instrument to link outlays,
output and results
 Method for measuring value for
money
 Evaluating functioning of the
Government

9.  Parliamentary Committee
 Committee of officers
 Guidelines framed by Department of
Expenditure

10. • FM concluded that the Budget would signify the
outlay, outcome budget would project intended
outcome and performance budget would reveal
what was achieved and not achieved.
• The external agencies would go to the field to
measure/evaluate whether what was stated in the
outcome budget had actually been carried out.

11.  EFC note should include ―What are the
development outcomes and outputs of the
scheme/project? The development outcomes
and outputs should be specified in measurable
terms along with baseline data against which
the impact of the scheme will be assessed.
 National River Conservation Programme –
setting up of an STP is an output and quality
water is outcome.

12.  Output and Outcomes
 Outlays are for one year and outcomes come
with a lag
 Budgets are cash basis and outcomes are
accrual basis
 Federal structure – outlays in the Union
domain and outcomes are in the States
 What is an output?
 Design of the programmes

13.  Expected Outcomes: 2005 – 2012
 Universal Health care, well functioning health care
delivery system.
 IMR to be reduced to 30/1000 live births by 2012
 MMR to be reduced to 100/100,000 live births by 2012
 TFR to be reduced to 2.1 by 2012
 Malaria Mortality Reduction Rate – 60% up to 2012
 Kala Azar to be eliminated by 2010, Filaria reduced by
80 % by 2010
 Dengue Mortality reduced by 50% by 2012
 RNTCP-2 – maintain 85% cure rate
 Responsive & Functional Health System

14.  Fully trained ASHA for every 1000 population
 Strengthening of health sub centres/PHC
 Construction of sub-centres
 Doctors/nurses to be appointed
 Grants to be released

15.  State
 UTTARAKHAND Rudraprayag (19) Haridwar (72) 53
 RAJASTHAN Kota (36) Jalor (79) 43
 UTTAR PRADESH Kanpur Nagar (36) Shrawasti (103) 67
 BIHAR Patna (39) Madhepura (71) 32
 ASSAM Dhemaji (44) Kokrajhar (76) 32
 JHARKHAND Purbi Singhbum (26) Godda (64) 38
 ORISSA Baleshwar (49) Balangir (100) 51
 CHHATTISGARH Durg (43) Raigarh (65) 22
 MADHYA PRADESH Indore (40) Panna (93)
53otln.
 of
 districts
 Districts with
 minimum IMR
 Districts with
 maximum IMR Range

16. UTTARAKHAND Kumaon HQ (183) Garhwal HQ (190) 7
RAJASTHAN Bharatpur (292) Udaipur (364) 72
U P Jhansi Mandal (241) Faizabad (451) 210
BIHAR Patna (258) Purnia (377) 119
ASSAM Barak Valley(342) Upper Assam (430) 88
JHARKHAND Chota Nagpur(8) Paragana (325) 117
ORISSA Northern (253) Southern (311) 58
CHHATTISGARH Raipur (243) Bastar (312) 69
M P Gwalior (262) Shahdol (435) 173

17.  Improving the nutritional status of children in
classes I-V in Government, Local Body and
Government aided schools, and EGS and AIE
centres.
 Encouraging poor children, belonging to
disadvantaged sections, to attend school more
regularly and help them concentrate on
classroom activities.
 Providing nutritional support to children of
primary stage in drought affected areas during
summer vacation.

18.  Quantifiable deliverables
Regular provision of Mid day meal to 11.36
crore children
 Outcomes
Regular provision of Mid day meal all
children

19.  Modern and transparent budgeting, accounting,
financial management systems, designed and
adopted for all urban service and governance
functions
 City-wide framework for planning and governance
will be established and become operational
 All urban residents will be able to obtain access to
a basic level of urban services
 Financially self-sustaining agencies for urban
governance and service delivery will be
established, through reforms to major revenue
instruments

20.  - 65 Mission cities have prepared comprehensive City
Development Plans, charting out their long-term visions, and
goals in urban governance and development.
 - The Memorandum of Agreement in respect of the reforms
agenda to be undertaken by States & Cities has been negotiated
and signed with 65 Mission cities.
 - By 31st January, 2012, 126 numbers of projects related to water
supply, Roads Flyovers/RoB, Drainage/Storm water Drains,
Sewerage, Urban Renewal, Solid Waste Management were
completed under UIG, and 142 numbers of projects related to
Water Supply, ------- completed under UIDSSMT. These projects
aim at provision of better water supply, improved road networks,
better drainage and sewerage system etc.

21.  To complete on-going irrigation/multipurpose
projects in advanced stage of construction and
which are beyond the resources capability of
 State Government in a time bound manner
with a view to a) create additional irrigation
potential and b) derive envisaged benefits from
these projects.

22.  Irrigation potential of 1.2 million hectares is
targeted for creation and 10 major /medium
projects are targeted for completion.
 We do not know what happened as the Budget
provisions are made in the Finance Ministry’s
Demand.
 SO I WASH MY HANDS OFF
 So is with JNNURM

23.  In recent times many PPP agreements include
clearly defined outcomes, their quality and
duration of the assured output.
 Public service guarantee Act- MP limited to
issue of certificates and other minor services.
 Why not extend PPP agreements to basic
necessities like water, sanitation, transport,
power etc.,.

24.  Public Service agreements (PSA)
-between HM Treasury and Dept.
-to improve the outcomes
-single delivery agreement shared across
all contributing depts. developed in
consultation with delivery partners and
frontline workers.

25.  of deaths that occurred in 2006, 24 per cent
were of people below the age of 70;
 death rates from coronary heart disease in
people aged 35-64 in the lowest social classes
were almost double that of those in the highest;
 4,000 people still commit suicide each year and
suicide is the second commonest cause of death
in men under 35;
 men in the highest social class live on average
eight years longer than those in the lowest;

26.  reducing the mortality rate by 2010 for cancer by at
least 20 per cent in people under 75, with a reduction in
the inequalities gap by at least 6 per cent;
 reducing the mortality rate by 2010 for heart disease,
stroke and related diseases by at least 40 per cent in
people under 75, with a reduction in the inequalities
gap by at least 40 per cent;
 reducing mortality rate by 2010 for suicide and injury
of undetermined intent by at least 20 per cent; and
 reducing health inequalities by 10 per cent by 2010 as
measured by infant mortality and life expectancy at
birth.

27. Programme Objective Outlay Output Outcome
MDM Nutrition
retention
Rs.100 crore No. Children
provided
Increase in
Nutrition
levels
Decrease in
drop-out
Jnnurm Financial Self
sufficiency
Civic
infrastructure
Rs. 100 crore Reforms
No. projects
No. civic
bodies
achieved self-
sufficiency
Increased
water supply,
sanitation,
solid waste
etc
AIBP Increased
productivity
Rs. 100 crore Completed
projects, area
Increased
productivity

28.  It is simply a tool for getting better information
about the true cost of government. It needs to
be used effectively and in tandem with a
number of other management reforms in order
to achieve the desired improvement in
decision-making in government.